Under Indigo's latest offer, fares for Mumbai-Kolkata and Delhi-Chennai will now cost Rs 3,499.

Fare war triggered by the entry of AirAsia continues as IndiGo has launched another round of promotional fares. (Reuters)

The fare war triggered by the entry of AirAsia into the domestic market continues as the budget carrier IndiGo has launched another round of promotional fares, starting at Rs 1,724 (all inclusive) for a limited period.

The announcement comes a day after SpiceJet extended its monsoon offer with an initial ticket price of Rs 1,999 to all the destinations it flies too.

The bookings under the offer have already commenced and will last up to tomorrow with travel validity between July 19 and September 30, according to the IndiGo website.

Under the airline’s latest offer, a one-way journey on Delhi-Lucknow sector will now cost Rs 1,724 while the fare for a Delhi-Ahmedabad journey will be Rs 2,499.

Similarly, the fares for Mumbai-Kolkata and Delhi-Chennai under the offer are Rs 3,499.

AirAsia India, which entered the budget segment space with its first flight to Goa from Bangalore on June 12 is now all set to launch its flight services on the second route, Bangalore-Chennai-Bangalore from tomorrow. Besides, it has already announced to add Kochi in its network from next month.